By Connor Hart
Sutro Biopharma will cut its workforce by half after completing a strategic review of the company's portfolio.
Its top executive will also step down, as it switches focus to its next-generation pipeline of cancer treatments, the South San Francisco, Calif., the oncology company said Thursday.
Sutro had 302 full-time employees as of Dec. 31, 2023, according to the latest headcount available in filings with the Securities and Exchange Commission.
The company said its strategic review and reorganization will considerably reduce operating costs, providing it with a cash runway expected to last into the fourth quarter of 2026.
Under the reorganization, Jane Chung will succeed Bill Newell as the company's chief executive. Chung most recently served as Sutro's chief operating officer.
Sutro will also reallocate resources to the development of its three wholly-owned preclinical programs in its next-generation cancer treatments pipeline, deprioritizing the development of luvelta, a potential treatment for certain types of ovarian cancer. The company said it will continue to explore global out-licensing opportunities for the drug.
Sutro completed its review as it widened its loss and posted lower revenue in 2024.
The company posted a loss of $227.5 million last year, compared with a loss of $106.8 million in 2023. On a per-share basis, the company's loss came in at $2.96, compared with the $2.90 loss that analysts surveyed by FactSet expected.
Revenue fell 60% to $62 million, which was ahead of the $59 million that analysts modeled.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
March 13, 2025 17:01 ET (21:01 GMT)
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